When many drivers want to upgrade their car, they default to buying a new model and pay for it via either a loan or cash. However, leasing a car is a viable alternative. Taking out a Land Rover lease on a new car holds advantages and unique drawbacks. Learn more with the experts at Land Rover Northfield.
Benefits of Leasing a Vehicle
When you lease a car, typically for a term of between 36-48 months, you will likely avoid long-term issues that come after tens of thousands of miles. Even when your vehicle needs repairs, you may have a warranty that covers them. You will also have access to the most up-to-date safety features and interior technology, maybe even more advanced than those in a vehicle you could afford to purchase.
Your monthly payments are usually lower than taking out a loan for a new car because you are only paying the difference in value between the beginning and end of the lease, due to market depreciation. In contrast, a new car loan includes paying back the principal, the actual car price, alongside interest.
Important Considerations
Leasing a vehicle comes with some hidden costs, however. For instance, you’ll be subject to a mileage restriction, usually about 8,000-10,000 miles per year. Exceeding the mileage limit means you must pay a fee per excess mile, which ranges between 10 and 50 cents. You must also keep the vehicle for the entire lease term or risk paying thousands of dollars in penalties for returning it prematurely.
The most glaring drawback of leasing a car is that leasing successive cars will cost more in the long term than buying a car. Constantly leasing vehicles means that you won’t own a vehicle outright, which may place strain on your finances.
Learn More About Leasing at Land Rover Northfield
If you want to know if a lease is right for you, talk to the finance department at Land Rover Northfield. Our friendly professionals are standing by to find you the best deal to fit your lifestyle. Contact us today!